Incomplete service history wipes 20 per cent off used car values

Having an incomplete service history for a used car can wipe as much as 20 per cent from its sale value, a new survey has found.

According to research by KwikFit, the average used car would be sold for 19 per cent less if a dealer had an incomplete service history. A fully stamped service book was found to add an average of £1,500 to the final price for a vehicle.

Roger Griggs, communications director at KwikFit, commented: “Car owners often skip services to save money but in the long run, this can end up being very costly.”

The same can be said when it comes to obtaining a motor trade insurance policy – looking for the cheapest policy might seem like an easy way to save money, but it could cost a business in the long run should they need to make a claim but not have adequate cover.

KwikFit’s study also revealed that 45 per cent of potential car buyers would walk away from a deal if the vehicle in question did not come with a full, up-to-date service history. The problem was more prevalent among older buyers; over half of over 50s said they would not buy a car without a complete service history, compared to just a third of buyers aged 18 to 24.

Griggs added about the issue: “Not only does it reduce the vehicle’s value, it also makes the pool of potential buyers much smaller, making it harder to sell. Having a record that shows regular servicing gives prospective buyers confidence that a car has been well maintained, so even if you have one or two missing, frequent servicing is still important.”

Carole Nash Insurance Consultants Ltd is regulated by the Ministry of Justice in respect of regulated claims management activities; its registration is recorded on the website www.claimsregulation.gov.uk.

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